Investing.com - Asian shares traded mixed after an initial spurt higher regionally after the French election went widely as expected, pitting centrist Emmanuel Macron and far-right leader Marine Le Pen in a May 7 runoff, but tension on the Korean peninsula weighing on sentiment later.
Centrist candidate Emmanuel Macron won 23.7 percent of the votes in the first round of the election on Sunday while National Front leader Marine Le Pen secured 21.7 percent, according to estimates.
Japan's benchmark Nikkei 225 index surged 1.2% on the back of the French polls while the Kospi gained 0.22%. The S&P/ASX 200 rose 0.26%.
In greater China however the Hang Seng Index reversed gains and fell 0.27%, while the Shanghai Composite dipped 1.56%. U.S. share futures however continued to point higher.
Geopolitical tensions in the Korean peninsula took a backseat even though tension continued to ramp up at the weekend. North Korea reportedly arrested an American citizen in Pyongyang. The hermit state also indicated that it was prepared to sink a U.S. aircraft carrier to showcase its military prowess.
Japanese Prime Minister Shinzo Abe also spoke with U.S. President Donald Trump about North Korea over the phone earlier today, with a separate call between Trump and Chinese President Xi Jinping also held.
Last week, U.S. stocks closed lower on Friday, despite the release of bullish economic data and an update from President Donald Trump on his tax reform plan.
All three major U.S. indexes ended the session in negative territory but attempted to pare losses, after Donald Trump said Friday, he will unveil a tax plan next week that includes a “massive tax cut” for individuals and businesses.
In an interview with The Associated Press, President Trump stopped short of providing a detailed outlined of the plan but insisted that the tax cuts will be “bigger I believe than any tax cut ever” and said the tax reform packaged will be released on “Wednesday [April 26] or shortly thereafter”.
Meanwhile, a bullish report from the National Association of Realtors showed sales of previously owned homes in the U.S. hit a ten-year high in March. Existing home sales rose 4.4% in March from the previous month to an annualised pace of 5.71m units, which confounded economists’ estimates of a 2.5% gain. The National Association of Realtors said on Friday.
The Dow Jones Industrial Average closed 0.15% lower at 20,547. The S&P 500 dipped 0.30% and the Nasdaq Composite traded 0.11% lower at 5910.52.